Can a $240,000 Soccer Field Contract Be Considered Substantially Performed Under the Construction Remedies Act if $8,000 Worth of Improvements Are Still Missing?

Question from asd, Can a $240,000 Soccer Field Contract Be Considered Substantially Performed Under the Construction Remedies Act if $8,000 Worth of Improvements Are Still Missing?

Answer from AI:

According to the Construction Remedies Act (Assented to December 18, 2020), a contract is considered to be substantially performed when the improvement to be made under the contract is capable of completion or, where there is a known defect, correction, at a cost of no more than:

1. 3% of the first $1,000,000 of the contract price;
2. 2% of the next $1,000,000 of the contract price; and
3. 1% of the balance of the contract price.

Applying the Act to the Soccer Field Contract

In the case of a $240,000 contract for a soccer field, the cost of the remaining improvements ($8,000) would need to be less than the percentages outlined above for the contract to be considered substantially performed.

Calculating the threshold for substantial performance:

1. 3% of the first $1,000,000 of the contract price = $7,200
2. As the contract price is less than $2,000,000, the second point does not apply.
3. 1% of the balance of the contract price ($240,000 – $1,000,000 = -$760,000, which is not applicable as the balance is negative).

In this case, the cost of the remaining improvements ($8,000) is greater than the calculated threshold ($7,200). Therefore, based on the Construction Remedies Act, the contract would not be considered substantially performed.

Seeking Legal Advice

This is a general interpretation of the law and may not apply to all situations. It’s important to consult with a legal professional for personalized advice. Legal professionals can provide a more detailed analysis of your situation and advise you on the best course of action.

For more information, you can refer to the Construction Remedies Act.